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N1/N2 Winelands toll highway project, South Africa

29th March 2013

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

  

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Name and Location
N1/N2 Winelands toll highway project, Western Cape, South Africa.

Client
South African National Roads Authority Limited (Sanral).

Project Description
The project encompasses 105 km of the N1 highway between Cape Town and Worcester and a 70 km stretch of the N2 between Bot river and Cape Town.

The toll-highway project will include the construction and upgrading of roads and associated infrastructure on certain portions of the N1 between the R300 and Sandhills, and on the N2, in the Western Cape; the construction and upgrading of portions of the road; the upgrading of the second bore of the Huguenot tunnel; the construction of toll plazas between the R300 and the Bot river; and the construction of the new, closed ‘cut-and-cover’ tunnel alignment through Helderzicht, extending west from of the Danie Ackerman primary school to the Victoria street interchange.

In 2003, the project was granted environmental authorisation and was gazetted as a toll road in 2008.

Value
As the project is a 30-year concession, the South African National Roads Agency Limited (Sanral) has proposed to develop it through a public–private partnership.

The concessionaire will finance the construction, maintenance and operation through toll collection and be required to hand over the road to Sanral after this time.

The overall cost of the project is estimated at R10-billion.

Duration
The concession contract for the proposed project will be for a 30-year period and will comprise the upgrade work on the N1 and N2 during an initial construction period of about three years, and a further 27-year period, for the duration of time the road will be further upgraded, maintained and operated.

The initial construction works will take three years to complete. The operation and maintenance period for the public–private partnership project is expected to start from 2015, running to 2042.

Latest Developments
An application to halt construction of the N1/N2 Winelnads toll highway project will be heard in May 16 and 17.

The City of Cape Town contends that Sanral cannot be allowed to continue with its plans without the city having a full understanding of all the costs and impact of the project.
Sanral has agreed that it will not conclude a concession agreement before  June 1, 2013.
In response to the city’s urgent interdict application, filed in November 2011, Sanral agreed that it would take no further steps towards implementing the toll road project, pending the city’s review application being heard, and that it would provide the city with 45 days notice of its intention to start working on the project.

Such a notification was received on  March 6, 2013.

According to a media release by the City of Cape Town released on March 25, Sanral has thus far refused to share information with the city about the costs of upgrading and tolling the N1 and N2; the likely magnitude of the toll fees; and the impacts on road users, the local economy and the city.
In its notice to the city on March 6, Sanral indicated its intention to conclude a concession contract with the preferred bidder or, if necessary, the reserve bidder, at an unspecified time after April 20, 2013.

Sanral has also notified the city that it intends to start with construction work; however, the State-owned enterprise has refused to disclose what kind of work it plans to do, or when it will be done.

As a result of this notice, the City of Cape Town has decided to proceed with its interdict application to prevent the conclusion of the concession contract and the start of the project, pending the hearing of the review application.

Key Contracts and Suppliers
Group Five, Basil Read, Bouygues Construction (lead construction partners).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Sanral, Kobus van der Walt, tel +27 21 975 4600 or email Waltjc@nra.co.za; or project manager Tiago Massingue, tel +27 21 957 4627, fax +27 21 946 1630 or email massinguet@nra.co.za.
Group Five, tel +27 11 806 0241, fax +27 11 803 5829 or email scoventry@groupfive.co.za.
Basil Read, tel +27 11 418 6300 or fax +27 11 418 6333.
Bouygues Construction, tel +33 1 3060 3300, fax +33 1 3060 4861 or email bouygues-construction.com.

Edited by Creamer Media Reporter

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